Dáil Éireann debate -
Tuesday, 18 Dec 1990

Vol. 404 No. 1

Written Answers. - German Market Opportunities.

Seán Barrett

Question:

34 Mr. S. Barrett asked the Minister for Industry and Commerce the steps he has taken to advise Irish industry of the opportunities open to it following the reunification of Germany which will consume very large sums of money especially in relation to infrastructural developments; and if he will make a statement on the matter.

Minister for Industry and Commerce (Mr. O'Malley)

Monetary, economic and social union between the Federal Republic of Germany (FRG) and the former German Democratic Republic (GDR) was established on 1 July 1990. On 3 October 1990 political union occurred and the former GDR became fully integrated into the EC.

Prior to unification, the FRG was Ireland's second largest export market and third largest trading partner. In 1989, the relevant figures were as follows:

IR£ Billion
Imports:	1.07
Exports:	1.61
Total Trade:	2.68

In the same period, our trade with the former GDR was very small. In 1989 exports amounted to IR£4.3 million and imports amounted to IR£8.8 million. However, on the basis of our trade patterns with the FRG market and on estimates made by the Federal Ministery of Economics in Bonn, CTT estimates that Irish exports to the former GDR market could reach IR£200 million by 1996.

CTT monitor economic developments in Germany from the perspective of the potential for Irish exporters. CTT is already supplying business services and marketing support to Irish companies interested in the area of the former GDR. These services are provided through the CTT office in Dusseldorf and through the recently appointed CTT trade consultant in Berlin. This month CTT arranged a specialised briefing for 20 Irish companies on market conditions and possible opportunities. An effective way of getting business in the former GDR is often through West German institutions and buyers.

In addition to the services being provided to specific companies CTT will present a major workshop on the infrastructural, manufacturing and consumer demand situations in the region in Dublin in March 1991. This workshops is aimed at companies with no experience in this market who wish to investigate opportunities. In addition, sectoral trade missions will be arranged in response to investigations of the market and there will be an Irish stand at the Leipzig Spring Fair.

While the former GDR was one of the most economically advanced of the countries of Central and Eastern Europe the opportunities for business immediately following unification have been limited by the large number of bankruptcies, restructuring of industry and the virtual collapse of the distribution system.